Retirement can bring a lot of good things: more time, more freedom, and the chance to shape your days around what matters most to you. It can also bring big financial changes. That’s why a retirement checklist can be so helpful. It turns a big life change into a clear set of money moves you can work through one at a time.
While that may sound daunting, you may find that making the shift isn’t so difficult. The U.S. Department of Labor offers retirement planning worksheets designed to help people manage finances, set savings goals, decide how much to save, and organize financial documents. Paired with this retirement checklist, you should have the right tools you’ll need to get started before you stop working.
Why a retirement checklist matters
Retirement planning is personal. Some people plan to travel. Some want to work part time or need to support family members, manage health care costs, or pay down debt before leaving the workforce. This retirement checklist focuses on 10 practical steps you can take before your last day at work.
1. Build a retirement budget
Building a strong retirement budget is the foundation of your plan. It could help you understand how much money you may need each month and where that money may come from. Start by listing your expected expenses—like housing, utilities, groceries, and health care—and then look at what may change after you stop working. You may spend less on commuting, work clothes, or lunches out. You may spend more on health care, home projects, travel, or family support.
Once you have a first draft, compare your expected expenses with your expected income. That gap provides valuable information. If your expenses look higher than your income, you can make adjustments now instead of scrambling later.
2. Know where your retirement income will come from
Before you stop working, make a clear list of every possible income source. This may include:
- Employer retirement plans, such as a 401(k) or 403(b)
- Traditional or Roth IRAs
- Pensions
- Social Security
- Part-time work or consulting
- Rental income
- Annuities
- Savings or brokerage accounts
Your goal is to understand how much income each source may provide and when you can access it. This part of your retirement checklist can take time, especially if you have accounts from past employers. Consider consolidating accounts if it helps you keep things organized.
Keep in mind, some accounts have rules around withdrawals. Some income sources may start at a specific age. Some may affect your taxes. The clearer your income picture is, the easier it becomes to make confident choices.
3. Review your retirement account contributions
If you’re still working, you may have time to boost your retirement savings before you leave your job. Review how much you’re contributing to your workplace plan, whether you’re getting the full employer match, and whether catch-up contributions apply to you.
You don’t need to contribute the maximum for your plan to matter. The key is to review your options and make a choice that fits your budget. If you’re close to retirement, even a short period of increased contributions may help strengthen your overall plan.
4. Make a Social Security strategy
Social Security income can play an important role in your retirement checklist, so it’s worth understanding your options before you claim. You can start receiving Social Security retirement benefits as early as age 62, but claiming early usually reduces your monthly benefit.
On the other hand, waiting longer to apply can increase payments, though benefits no longer increase after age 70. The Social Security Administration considers full retirement age to be 67 for people born in 1960 or later.
Before you decide when to claim, consider your health, expected retirement expenses, spouse or partner’s benefits, other income sources, and whether you plan to keep working. A claiming decision can affect your monthly income for the rest of your life, so take your time with this one.
5. Plan for health care costs
Health care deserves a spot near the top of any retirement checklist. If you retire before age 65, you may need to bridge the gap until Medicare begins. That could mean staying on a spouse’s employer plan, using COBRA, buying coverage through the Health Insurance Marketplace, or exploring another option.
If you’re approaching 65, know your Medicare timeline. Medicare says the Initial Enrollment Period generally lasts 7 months: it starts 3 months before the month you turn 65 and ends 3 months after that month. Your coverage start date depends on when you sign up.
The Social Security Administration also notes that most people sign up for Medicare Part A and Part B when first eligible, usually at age 65. Delaying it may make sense for some people with employer group health coverage, but missing the right enrollment window could lead to gaps or penalties.
Also think beyond premiums. Retirement health care planning should include deductibles, prescriptions, dental care, vision care, hearing care, long-term care, and out-of-pocket costs.
6. Pay down high-interest debt
Debt can follow you into retirement if you don’t make a plan to pay it down before. That doesn’t mean every debt must disappear before you stop working, but high-interest debt can make a fixed income feel tighter.
Start by listing each debt, including the balance, interest rate, minimum payment, and payoff date. Then decide which repayment strategy makes sense. The debt avalanche method focuses on the highest interest rate first. The debt snowball method focuses on the smallest balance first.
Both strategies can help you make progress. Our guide to debt snowball vs. debt avalanche explains how each method works and how to choose the one that fits your motivation style.
If you’re juggling multiple payments, you may also want to learn how debt consolidation loans work. Debt consolidation may help simplify payments for some borrowers, but it works best when paired with a realistic budget and steady repayment habits.
7. Strengthen your emergency fund
This retirement checklist step can help you feel more prepared for the unexpected. An emergency fund may give your retirement plan breathing room. Even with a strong budget, life can still bring surprise expenses like home repairs, car issues, medical bills, or family emergencies.
Before you stop working, try to set aside cash that is easy to access and separate from your retirement investments. That way, you may be able to cover unexpected costs without immediately tapping investment accounts during a market downturn.
Your emergency fund target depends on your situation. Some people aim for 3-6 months of essential expenses. Others prefer more, especially if their retirement income will vary or they expect larger home, health, or family-related costs.
8. Understand taxes and required withdrawals
Taxes don’t stop in retirement. Your withdrawals, Social Security benefits, pension income, investment income, and part-time work could all affect your tax picture.
Identify which accounts are taxable, tax-deferred, or potentially tax-free when used correctly. Traditional 401(k)s and traditional IRAs typically create taxable income when you withdraw money. Roth accounts may offer tax-free qualified withdrawals. Brokerage accounts can create taxable dividends, interest, or capital gains.
You’ll also want to know when required minimum distributions, also called RMDs, begin. The IRS says the first RMD for IRAs generally must be taken by April 1 of the year after the calendar year you turn 73. For 401(k), profit-sharing, 403(b), or other defined contribution plans, the deadline is generally April 1 following the year you turn 73 or retire, if your plan allows a delay. Later RMDs are generally due by December 31 each year.
Missing an RMD can be costly. The IRS says you may have to pay a 25% excise tax on the amount not distributed as required, reduced to 10% if corrected within 2 years. Tax rules can get complicated, so consider talking with a tax professional before you finalize your withdrawal plan.
9. Update your estate and beneficiary information
Retirement is a good time to review the people, documents, and instructions connected to your financial life.
Be sure to update beneficiaries on retirement accounts, life insurance, bank accounts, and other financial accounts on your retirement checklist. Beneficiary designations often control who receives those assets, so make sure they reflect your current wishes.
You may also want to review or create:
- A will
- A durable power of attorney
- A health care power of attorney
- An advance health care directive
- A list of accounts, passwords, and key contacts
- Funeral or final-arrangement preferences
This step is not only about assets — it’s about making things easier for the people you trust. Consider an estate planning attorney to help you create the documents that fit your unique situation. A clear plan can reduce confusion and help your loved ones understand your wishes.
10. Test-drive your retirement plan
Before you stop working, try living on your expected retirement income for a few months. This can show you how your plan feels in real life. A test run can turn guesswork into knowledge. And when you know more, you can do more.
To get started, just move your expected retirement “paycheck” into checking each month, then use that amount for regular expenses. If you have extra money left over, great. If you feel stretched, review your spending and adjust before retirement begins.
This step can also help you decide whether to work a little longer, shift to part-time work, delay Social Security, reduce expenses, or make another change. And, if it’s tighter than you expected, you can always adjust with a budgeting method that works for you.
A simple retirement checklist you can use today
Here’s a quick version of the retirement checklist to keep handy:
- Build a retirement budget
- List your income sources
- Review retirement account contributions
- Make a Social Security strategy
- Plan for health care costs
- Pay down high-interest debt
- Strengthen your emergency fund
- Understand taxes and required withdrawals
- Update estate and beneficiary information
- Test-drive your retirement plan
You don’t have to complete the list all at once. Pick one step, make progress, and move to the next.
The bottom line
Retirement is a major life change, but a clear plan can make it feel more manageable. This retirement checklist gives you a practical way to review your budget, income, debt, health care, taxes, savings, and important documents before you stop working.
The goal isn’t perfection. The goal is preparation. Take it one step at a time. Ask questions. Review your numbers. Adjust as your life changes. With the right plan, you can feel more confident about your next chapter and the money moves that help support it.
This article is for educational purposes only and is not intended to provide financial, tax or legal advice. You should consult a professional for specific advice. Best Egg is not responsible for the information contained in third-party sites cited or hyperlinked in this article. Best Egg is not responsible for, and does not provide or endorse third party products, services or other third-party content.
